Tips for Making Your Best Offer on a Home
While the crazy ride that was the 'unicorn' years of housing is over, today's market is still competitive in many locations due to a lack of available homes for sale. If you're seeking to buy a property this season, remember that the peak frenzy of bidding wars has passed, but you may still encounter some multiple-offer circumstances.
Here are a few things to think about when putting in an offer on a house.
1. Use the Services of a Real Estate Professional
Rely on an agent who can help you achieve your goals and grasp what's going on in today's property market. Agents are knowledgeable about both the local market and national trends. They will draw on both of their areas of expertise to ensure you have all of the knowledge you need to move forward with confidence.
Furthermore, they are aware of what has worked for previous buyers in your region as well as what sellers may be looking for in an offer. It may appear straightforward, but responding to the demands of the seller will help your offer stand out. According to a Forbes article:
"Getting to know a local realtor where you’re hoping to buy can also potentially give you a crucial edge in a tight housing market."
2. Get Pre-Approved for a Mortgage
Given the present affordability issues, having a clear budget in mind is especially vital right now. Working with a lender to get pre-approved for a home loan is the best method to receive a clear picture of how much you can borrow.
Because you'll have a greater understanding of your figures, you'll be more financially assured. It also demonstrates to vendors that you are serious. And this can provide you a competitive advantage if you find yourself in a multiple-offer situation.
3. Make a Reasonable Offer
It's normal to desire the greatest price possible on a house. However, there are also hazards to submitting an offer that is too low. You don't want to make an offer that will be quickly rejected just to see if it sticks. According to Realtor.com:
“. . . an offer price that’s significantly lower than the listing price, is often rejected by sellers who feel insulted . . . Most listing agents try to get their sellers to at least enter negotiations with buyers, to counteroffer with a number a little closer to the list price. However, if a seller is offended by a buyer or isn’t taking the buyer seriously, there’s not much you, or the real estate agent, can do.”
Your agent's expertise in this area will help you stay competitive and find a price that is fair to both you and the seller.
4. Throughout the negotiation process, you should put your trust in your agent's expertise.
In order to put the winning bid on a home during the 'unicorn' years of housing, several purchasers ignored home inspections or did not ask for concessions from the seller. According to a Bankrate post, this isn't happening as much now, which is excellent news:
“While the market has largely calmed down since then, sellers are still very much in the driver’s seat in this era of scarce housing inventory. It’s not as common for buyers to waive inspections anymore, but it does still happen. . . . It’s in the buyer’s best interest to have a home inspected . . . Inspections alert you to existing or potential problems with the home, giving you not just an early heads up but also a useful negotiating tactic.”
Fortunately, the market has changed, and you may have more bargaining power than previously. When putting up an offer, your experienced real estate expert will assist you in determining which levers to pull and which you may not want to compromise on.
Let's connect when you buy a property this summer so you have an expert on your side to help you make the greatest offer.